Correlation Between Xtrackers ShortDAX and Park Bellheimer

Can any of the company-specific risk be diversified away by investing in both Xtrackers ShortDAX and Park Bellheimer at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xtrackers ShortDAX and Park Bellheimer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Xtrackers ShortDAX and Park Bellheimer AG, you can compare the effects of market volatilities on Xtrackers ShortDAX and Park Bellheimer and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xtrackers ShortDAX with a short position of Park Bellheimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers ShortDAX and Park Bellheimer.

Diversification Opportunities for Xtrackers ShortDAX and Park Bellheimer

0.0

Correlation Coefficient

Xtrackers ShortDAX  Park Bellheimer

Pay attention - limited upside

The 3 months correlation between Xtrackers and Park is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers ShortDAX and Park Bellheimer AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Bellheimer AG and Xtrackers ShortDAX is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xtrackers ShortDAX are associated (or correlated) with Park Bellheimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Bellheimer AG has no effect on the direction of Xtrackers ShortDAX i.e., Xtrackers ShortDAX and Park Bellheimer go up and down completely randomly.

Pair Corralation between Xtrackers ShortDAX and Park Bellheimer

If you would invest (100.00) in Park Bellheimer AG on December 21, 2024 and sell it today you would earn a total of  100.00  from holding Park Bellheimer AG or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Xtrackers ShortDAX  vs.  Park Bellheimer AG

Xtrackers ShortDAX

Risk-Adjusted Performance

Very Weak

Over the last 90 days Xtrackers ShortDAX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

Park Bellheimer AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Park Bellheimer AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Park Bellheimer is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Xtrackers ShortDAX and Park Bellheimer

The main advantage of trading using opposite Xtrackers ShortDAX and Park Bellheimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers ShortDAX position performs unexpectedly, Park Bellheimer can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Park Bellheimer will offset losses from the drop in Park Bellheimer's long position.

The idea behind Xtrackers ShortDAX and Park Bellheimer AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.